The Rise of Plant-Based Foods in the Middle East: A Growing Market and Local Innovations
In recent years, the Middle East has seen a significant increase in the demand for plant-based and vegan foods. This shift also emphasizes consuming more whole foods rather than processed ones. The plant-based food market in the MENA region is projected to reach USD 8-9 billion by 2030, growing at a CAGR of over 10%.
A plant-based revolution is underway in the Middle East. A survey by Toluna found that 87% of respondents in the UAE and 81% in Saudi Arabia have tried plant-based food and beverages. Key motivators for adopting plant-based or vegan diets in the region include improving quality of life, ethics, and addressing health issues. Supermarkets now offer a wide range of plant-based products, restaurants are adding new meat- and dairy-free options to their menus, and vegan social groups are gaining popularity. As more brands introduce diverse products, consumers are becoming increasingly conscious of their dietary choices.
Many supermarkets in the UAE and KSA now stock popular Western vegan products like Beyond Burger, Meatless Farm, Impossible Burger, V-Bites, Violife, and Quorn. Most of these items are currently imported, making them more expensive than their animal-based counterparts, and even pricier in the Middle East. However, the focus on local manufacturing is changing this trend.
For instance, Switch Foods, an Abu Dhabi-based company, has set up the first plant-based meat facility in Abu Dhabi, producing soy-free and vegan kebabs, minced meat, kofta, sujuk, and burger patties.
IFFCO launched THRYVE in the UAE, the Gulf Cooperation Council’s first fully plant-based meat brand. Starbucks in the UAE and Kuwait has added vegan beef to its menu, with support from California-based Beyond Meat. Additionally, the Albatha Group in Sharjah introduced a range of vegan meat products under the Healthy Farm brand, including kebabs, burgers, meatballs, and chunks, using organic kale and spinach imported from the UAE.
Key Opportunities:
Meeting Customer Demand: There is a growing desire among consumers to eat more plant-based foods. Popular items include ready-to-eat vegan patties, vegan burgers, vegan cakes, organic juices, and plant-based porridges. Restaurants and fast-food chains are increasingly offering and promoting plant-based and vegan menu options, with local brands also making their mark in the market.
Enhancing Food Security: Supporting plant-based diets can significantly improve food security, especially if Middle Eastern businesses source their products from regional farmers. Animal husbandry requires substantial resources like land and water, but switching to plant-based ingredients can drastically reduce this usage. Exploring environmentally friendly proteins, such as fermented protein, could further enhance food security and self-sufficiency in the Middle East.
Increasing Health Awareness: Although meat is a staple in Arab households, the market for plant-based alternatives is rapidly growing. This trend is primarily driven by rising health consciousness in the Middle East, unlike Western markets where animal welfare and environmental sustainability are major factors. Health benefits, such as being free from trans fats and cholesterol, are making plant-based meat products increasingly popular.
Market Disruptions:
With the growing trend for plant-based and vegan foods, many food manufacturers in the region have introduced innovative products. For example, Al Islami, a UAE-based halal food producer, launched a burger made from sunflower protein, fava beans, and peas. Americana, a key player in the local food industry, introduced Nabati, a range of five plant-based beef and poultry products, including nuggets, meatballs, and patties. Juhayna Food Industries, one of Egypt’s oldest dairy and juice producers, became the first in the country to offer a full line of plant-based milk.
Other companies like Al Islami Foods, Blue Diamond Growers, Danone SA, Healthy Farm, Freakin’ Healthy, KOITA Foods, Upfield BV, and Kellogg Company are also offering a variety of innovative products in the region. The UAE declared 2023 as the “Year of Sustainability” in preparation for hosting the COP28 climate meeting, encouraging citizens to adopt plant-based diets and reduce food waste.
Spinneys launched the “Power of Plants” initiative to promote more sustainable choices among consumers. Over the past three years, sales of plant-based foods in grocery stores have increased by 54%.
Current Challenges:
High Cost of Products: Plant-based products need to achieve price parity with animal meat. Local sourcing and production of plant-based and vegan products can enhance flexibility, affordability, and availability. Producing these items locally allows for volume adjustments based on regional demand. Additionally, efficient production technology and government support can help achieve the right pricing for these products.
Taste and Texture Concerns: The sensory experience of plant-based foods is a significant barrier for many consumers, especially if they expect flavors and textures similar to animal-based products. Plant-based foods need to taste and smell as appealing as animal meat to boost demand and consumption.
Future Strategic Outlook:
Plant-based foods and vegan meals, which began as a trend a few years ago, have now become a mainstream part of the food industry. As consumers become more aware that animal-based foods produce twice the greenhouse gas emissions of plant-based foods, there will be increased efforts to consume more sustainable options. Additionally, consumers are gravitating towards products with fewer ingredients and clean labels in the plant-based and vegan food sector. Dairy companies are expanding their offerings to include a robust range of dairy-free products. Looking ahead, the industry is expected to grow with the entry of new market players introducing innovative food products.